Currency Trading Systems

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Currency Trading Systems
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There is no doubt that the foreign exchange market will maintain a dynamic pace of development in the future. It is caused by demand, dynamic international economic relations, the convenience of operations, and benefits.

That’s why any trader needs not only a good knowledge of the market but also solid technical and software support. You can get acquainted with a complex solution from FBS. Except for the trading platform, it is possible to get analytics, education, promotion, and partnership services. FBS deposit methods are diversified by the banking or exchange payment systems you could use during operations. It is possible to choose Visa, Neteller, StickPay, or even operate with local virtual platforms.

Trading Through Brokers

Brokers in the foreign exchange market do not open their positions, but only serve banks. They have to:

  • bring the buyer to the seller in the market;
  • optimize the price announced to customers;
  • promptly, accurately, and honestly implement the trader’s order.

The currency brokerage firm has direct lines of communication with banks around the world. The anonymity of entities trading on the exchange market ensures the efficiency of the market. All banks participate in the trade under equal conditions.

Brokers receive commissions that are paid equally by the buyer and seller. The sum of this payment is negotiable and is set by the bank for the brokerage firm individually.

Brokers announce to their clients the prices of other clients, either in a two-way (buy and sell) or one-way (buy or sell) manner. Fundamental and technical analysis is used to predict price movements. Another advantage of the brokerage market is that the broker can provide the client with a wider choice of banks.

Direct Dealing

Direct dealing is based on trading reciprocity. It provides more freedom of action when trading compared to dealing on the brokerage market. Traders sometimes derive certain benefits from this. Direct dealing was forever changed in the mid-80s with the introduction of dealing systems.

The direct dealing service gives you the opportunity to:

  • receive data on exchange transactions from a bank dealer online;
  • receive an overview of the interbank foreign exchange market of any country;
  • promptly enter into agreements for the sale and purchase of foreign currency.

The advanced dealing system, in which the bank’s dealers work, provides an opportunity to ensure reliability, security, and speed when conducting foreign exchange transactions.

Dealing Systems

Dealing systems are servers running on the Internet that connect participating banks around the world by providing each of them with a personal terminal. The platforms are fast, reliable, and safe. The software is very reliable for the perception of long exchange rate figures and standard values. In addition, it provides error-free and fast communication between partners, switching interlocutors, and accessing databases.

Many banks use a combination of brokers and dealing systems. Traders establish personal ties in the market with both brokers and traders but choose the exchange intermediaries based on the prices offered. Therefore, the division of the market into sectors between dealing systems and brokers varies depending on market conditions.

Important Conclusions

There are three main currency trading systems reviewed in the article. Not only a newcomer but also an experienced specialist in foreign exchange should always pay attention to changes within these complexes. It is also important to research all the differences and special features to function in the trading market efficiently.